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"A Romney win will help investor confidence, and that will bring some foreign capital, which has been sitting on the sidelines, back into the U.S. market, driving the dollar and equities higher"
- Action Economics (based on CNBC)Pair's Outlook
The decline initiated after an encounter with a resistance level at 1.0001/10 appears to have come to an end and USD/CAD already seems to be ready to test it once again. A breach of the 200-day SMA will imply continuation of a bullish scenario up to 1.0060/63. A close beneath will not necessarily mean a reversal, but rather a delay of a rally to later, since the medium-term outlook is positive.
Traders' Sentiment
The gap between the amounts of long and short positions has sharply widened, from 10% last week up to 38%, meaning that the market on aggregate is becoming increasingly convinced the pair's growth. Additionally, buy orders are in majority (59%) and support the bullish outlook.
© Dukascopy Bank SA